Market dynamics & the challenges of growing a business in pharmaceutical industry
Market dynamics & the challenges of growing a business in pharmaceutical industry?
What does the Pharmaceutical industry refer to??
The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients, with the aim to cure them, vaccinate them, or alleviate symptoms. Pharmaceutical companies may deal in generic or brand medications and medical devices.
How dynamic is the pharmaceutical industry?
The pharmaceutical industry is a very dynamic sector. While customer demand is a primary influence, the pharmaceutical industry is also faced with numerous unique pressures that other mainstream industries do not contend with.
Pharmaceutical industry market size is around $700 billion.?
The market is geographically concentrated, with sales in the United States accounting for about 48% of the total, followed by Europe’s 29% and Japan’s 11%. Together, sales in these three regions account for slightly under 90% of the Pharmaceutical market. Since the late nineties, Pharmaceutical sales has increased by an average annual rate of 8.4%—stronger growth than the world economy in general
Pharmaceutical industry’s changing market dynamics
Regarding to International Journal of the Economics of Business study on a panel dataset of 82 drugs that lost exclusivity between 2009 and 2018, had examination on three key variables:?
then had a comparative analysis of these variables using an earlier dataset of 40 drugs that lost exclusivity in 1992–1998.?
The findings reflecting rising market power and the ongoing major structural changes in the pharmaceutical industry,
Findings :
Decrease in the number of generic manufacturers per drug
Higher generic concentration
Higher generic-to-brand price ratios in the more recent years.?
Generics have garnered higher market share
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So, what are the Big challenges facing the pharmaceutical industry?
The pharmaceutical industry is economically important both for employment and for economic balance.?However, it must constantly face many challenges that question the sustainability of several laboratories, including but not limited to:
Recently the pharmaceutical industry needed proper techniques to analyze pricing structures to boost profit margins. Analyzing the shifting customer behavior and fluctuating prices is one of the biggest challenges in the pharmaceutical industry.
Every industry can face supply chain problems. Supply chains have witnessed an unprecedented disruption all around the world.?In fact, this represents one of the major challenges facing the pharmaceutical industry.
The biggest challenge in the pharmaceutical industry players is to devise market forecasts and enhance their customer service levels.?
Demand forecasting is an essential component for the pharmaceutical companies to stay ahead in the competition and match the supply to demand. Ensuring that all the goods are produced at the desired time and delivered seamlessly poses a big challenge to the pharma companies, especially if the pharmaceutical company is exporting to different regions.
To define a qualified workforce, we can say that it concerns people who carry out technical or intellectual work that requires thorough knowledge in a particular field of its discipline.
Relying on a qualified workforce is essential that ensures a promising future in the pharmaceutical industry. In fact, the pharmaceutical industry needs a workforce that has significant knowledge, experience, and skills. The pharmaceutical sector has to increase its investment in a highly qualified workforce to continue progress.
In the pharmaceutical industry, data refers to all the information entered by technicians or generated by machines. It should be noted that data collection is one of the crucial elements for every industry that aspires to face competition. In addition, the importance of data collection lies in the companies’ ability to perform analysis that can guide decision making.
Managing risks in the drug manufacturing process and quality systems is of great importance. For pharmaceutical industry players, it becomes very important to maintain product quality, and managing risk of legal nature. Hence, it becomes challenging for the pharma companies to identify possible risks associated with a product or processes involved in manufacturing, development, and distribution of the product.
The pharmaceutical industry is a very dynamic sector, so focusing on these challenges : Price fluctuation assessment, Supply chain disruption, Demand forecasting, qualified workforce, Collection and analysis huge data, Risk management then finding ways to work on them is our only way to keep up with this rapid change.